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i <br /> ("W of REQUEST FOR ACTION <br /> Elk <br /> e <br /> To ITEM NUMBER <br /> Mayor and City Council 14 <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> Work Session November 5, 2012 Tim Simon, Finance Director <br /> ITEM DESCRIPTION REVIEWED By <br /> 2013 Budget Cal Portner, City Administrator <br /> REVIEWED BY <br /> ACTION REQUESTED <br /> Update and review of 2013 budgets. <br /> BACKGROUND/DISCUSSION <br /> The last time we reviewed the General Fund Budget,we had a budgeted expenditure of$13,018,700,a <br /> 2.69%increase over 2012. With the adjusted amounts we reviewed at the last meeting, expenditures are <br /> at$12,874,250, or 1.55%more than 2012. The 1.55%is primarily inflationary adjustments. The current <br /> consumer price index (CPI) for the Midwest is just under 3% as of September 2012. <br /> The proposed adjustments that we reviewed included a 0.5% employee turnover item which amounts to <br /> $41,600. This amount is included in the Council Contingency as a negative Personal Services amount since <br /> it affects numerous department budgets. The Council Contingency will include $50,000 for operations <br /> and the negative employee turnover amount. <br /> Attached is the Council Contingency Budget worksheet with the details. <br /> The property tax levy is still proposed at$10,275,815, the same amount as in 2012. The proposed 2013 <br /> property tax levy remains lower than the amount levied in 2007. <br /> The 2013 proposed budget and levy impact on taxpayers with a home at the median value of$152,200 is <br /> a city tax decrease of 9.21%. The median value home experienced a value decrease of 10.94% from 2012. <br /> The complete updated General Fund detail budget is included in Dropbox under Council Information. <br /> We are still tracking two items, employee health insurance opt out waiver numbers and pricing for the <br /> state fuel contract. <br /> We budgeted for an average diesel and unleaded price of$3.25 per gallon,including taxes. We use <br /> approximately 83,400 gallons per year. If the state fuel contract is locked in at$3.00 per gallon we would <br /> decrease the budget by approximately$21,000. <br /> The option to waive out of the city's group health insurance plan was recently approved with a monthly <br /> incentive of$300,providing the employee can show proof of existing coverage. The incentive could <br /> O Ea0 6f <br /> N:\Public Bodies\City Council\Finance\Tim\2012\budgetstftffreport01105.docx P <br />